What is insider trading?

Economics Stock Market Questions



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What is insider trading?

Insider trading refers to the illegal practice of trading stocks or other securities based on material non-public information about the company. It involves individuals who have access to confidential information, such as company executives, employees, or directors, using that information to make trades for their personal gain. Insider trading is considered unethical and illegal as it undermines the fairness and integrity of the stock market.